Automobile industry woes and the conundrum of a cut in the GST rate
- In August, CV sales dropped by 39%, PVs by 32% and two-wheelers by 22%
- Investors in the auto universe seem to be optimistic either of a GST rate cut or that the worst is behind
Mumbai: The fear of slowing automobile sales tipping over into a recession is mounting. The industry is pinning its hopes on a cut in the goods and services tax (GST) rate from 28% to 18% to reverse the trend. But the government has to balance several aspects of growth and fiscal prudence.
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